Ter its 2nd consumer research survey, classified webpagina OLX found that a massive Rs. 56,200 crores worth of unused goods are lounging around ter people’s houses across India. That’s just overheen $9 billion, and it’s a number that OLX believes will proceed to rise. For the release of the survey, OLX gathered a panel consisting of OLX CEO Amarjit Singh Batra, along with Santosh Desai, CEO of brand consulting stiff Futurebrands, Dhiraj Nayyar, CEO of public advocacy think waterreservoir Think India Foundation, social scientist Shiv Vishwanathan and actor Tara Sharma.
OLX’s customer survey wasgoed carried out across 16 cities, and Five,800 people were asked about unused products te their houses – what goods they were presently using, which ones they planned to sell, and which ones were simply being stocked at huis for any reason.
According to OLX, on average, there is around Rs. 8,400 worth of goods lounging around ter houses across the country gathering dust, and that figure is Rs. Nineteen,500 across tier-1 cities. Multiply this by the numbers of households across the country, and you arrive at the mind-boggling number OLX is talking about.
Mumbai has the most hoarders, with 99 procent of the people surveyed admitting to draping on to goods they weren’t using, Kolkata wasgoed at 98 procent, while Delhi rounds out the top five at ‘just’ 82 procent.
Most of the unused stuff people are draping on to are clothes, kitchen utensils, and books. “Almost 20 procent of the things ter your house are irrelevant to you,” says OLX CEO Amarjit Singh Batra. “You can just sell them without thinking.”
However, only 48 procent of the people surveyed ter North India said they sell old goods – and this wasgoed the highest number around the country. However, things seem to be switching, thanks at least partially due to the marketing blitz by classified sites like OLX and Quikr encouraging you to, well, sell everything. 85 procent of the sampled audience ter Kolkata said they project to sell their used goods te the future.
Mobile phones and other consumer electronics are commonly sold on OLX, but books are the most popular category, with 17 procent of the correspondents surveyed admitting to having used the webpagina to sell unused reading material.
“Spil people become more aware of the fact that they can lightly sell their unused old goods, wij’ll see more secondhand sales taking place,” says Batra. “Part of the reason for this is that earlier, wij used to use goods till the very end of their life. But today, if you’re buying the latest phones and gadgets, then you have to dispose of the old one. So today, people are using maybe 25-30 procent of a product’s lifecycle.”
Futurebrands’s Desai agreed, telling that consumption is now very immobile ter the present. “People keep wanting to buy the latest thing – it reflects on their personality and is a statement,” he says. “Te earlier times, wij had the philosophy of ‘paisa vasool’. So an old product would be recycled within the family, you’d get your brother’s mitt mij downs, and you bought things expecting them to be ter use for years. That’s switched and so you’ll see the formal used goods economy grow spil a result.”
Part of the switch is also te the more aspirational market wij live te today. According to OLX, 51 procent of people sell their products because they want to upgrade to better ones. At the same time, Sixty-nine procent of all respondents said they shop on OLX since used goods are less expensive.
“Wij’re all buying more and more expensive things,” says Batra. “If you are buying an expensive phone, you won’t give it away spil a hand-me-down. And so you’re not using it, and you end up hoarding it instead because you don’t want to waste its value.”
But sites like OLX and Quikr also make it much lighter for sellers to get terugkoppeling from buyers without middlemen. This makes it lighter for people to decently judge the value of their old goods.
“Wij never talk about used goods because they’re considered inferior,” says Think India Foundation’s Dhiraj Nayyar. “This creates a problem because someone like mij, for example, doesn’t know what value his old things have. I have stuff lounging around at huis that I don’t use, but I have no idea what it is worth, and people don’t want to sell it for too low a price either. You don’t want to feel like you made a mistake.”
“That’s why sites like OLX help, because they provide the instruments to price used goods,” he says. “Otherwise, I may not know what the actual value of my things is. If I bought a fitness station for Rs. 20,000, can I sell it for Rs. Two,000, or Rs. Five,000, or Rs. Ten,000?”